Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam.
In 2020, a can of Spam cost 4 dollars in Ectenia and 24 pesos in Wiknam.
The exchange rate between Ectenian dollars and Wiknamian pesos was
pesos per dollar.
Over the next 35 years, inflation is expected to be 2 percent per year in Ectenia and 4 percent per year in Wiknam. If this inflation comes to pass, what will happen over this period to the price of Spam and the exchange rate?
Over this period, the price of Spam in Ectenia will , and the price of Spam in Wiknam will . (Hint: Recall the rule of 70 from the chapter "The Basic Tools of Finance.") The exchange rate between the two countries will .
will likely have a higher nominal interest rate.
A friend of yours suggests a get-rich-quick scheme: borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit from the interest-rate differential.
Which of the following statements explains the flaw in your friend's logic?
The scheme would work only if there is greater inflation in one nation than in the other.
The scheme would work only if the real interest rates are the same in both nations.
Nominal exchange rates adjust for the effects of inflation.

Answers

Answer 1

Over the next 35 years, the price of Spam in Ectenia is expected to increase by approximately 2% per year for 35 years, leading to a total increase of about 85%.

Similarly, the price of Spam in Wiknam is expected to increase by approximately 4% per year for 35 years, leading to a total increase of about 220%.

The exchange rate between the two countries will adjust to reflect the relative inflation rates, such that the peso will depreciate relative to the Ectenian dollar.

Specifically, the peso is expected to depreciate by approximately (220% - 85%) = 135% over the 35-year period. This means that it will take more pesos to purchase one Ectenian dollar in the future, and the exchange rate will likely adjust accordingly.

The flaw in your friend's logic is that nominal interest rates do not necessarily reflect the true returns on investment after accounting for inflation.

Real interest rates, which take inflation into account, are a better indicator of the true returns on investment. Therefore, it is possible that even if one country has a higher nominal interest rate than the other, the real interest rate may be lower, leading to lower returns on investment.

Additionally, exchange rate fluctuations can also significantly impact investment returns, as changes in the exchange rate can offset any gains from interest rate differentials.

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Related Questions

Which one of the following best describes the information reflected in market prices if the financial markets are semi-strong form efficient?A. only historical price informationB. all private informationC. all public informationD. all information of any kind

Answers

If the financial markets are semi-strong form efficient, then all publicly available information is already reflected in market prices.

This means that option C, "all public information," is the best choice to describe the information reflected in market prices.

This includes information such as company financial statements, economic data releases, and news articles that are accessible to anyone.

However, it's important to note that this efficiency assumes that all market participants have access to and interpret the information in the same way.

If there are discrepancies in interpretation or access to information, then there may still be opportunities for profit through active management or trading strategies.

Historical price information (option A) may be a factor in determining market trends and patterns, but it is not the only information that affects market prices.

Private information (option B) would not be reflected in market prices in a semi-strong form efficient market because it is not publicly available. Option D, "all information of any kind,"

is too broad and includes private information that is not publicly available, which is not reflected in semi-strong form efficient market prices.

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Racheal works at a toy manufacturing plant and is part of a labor union with her fellow employees. when the plants management decides to increase employees' daily work hours to meet higher customer demands, rachael and the other union members launch a public protest, marching outside the plant and waving antimanagement signs. this scenario best describes

Answers

This scenario describes a labor dispute between the toy manufacturing plant management and the labor union, which represents the employees, including Racheal.

The management's decision to increase employees' daily work hours without proper negotiation with the labor union is a violation of the collective bargaining agreement.

As a result, Racheal and other union members are protesting against the management's decision by staging a public demonstration outside the plant and displaying anti-management signs.

This type of protest is known as a labor strike, which is a common tactic used by labor unions to exert pressure on the management to meet their demands, including better working conditions, wages, and benefits.

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the fair and accurate credit transaction act attempts to reduce the impact on individuals who are the target of .

Answers

The Fair and Accurate Credit Transactions Act (FACTA) aims to reduce the impact on individuals who are the target of identity theft and fraud. It provides consumers with better access to their credit information, enhances the accuracy of credit reports, and offers better protection against identity theft.

The Fair and Accurate Credit Transaction Act, also known as FACTA, aims to minimize the negative impact on individuals who are the target of identity theft or fraudulent activities related to their credit information. This legislation provides several provisions that enable individuals to monitor their credit reports and detect any unauthorized activities or errors. The law requires that credit reporting agencies provide individuals with one free credit report per year, which allows them to review their credit history and identify any suspicious activity. FACTA also mandates that companies must dispose of sensitive consumer information in a secure manner to prevent data breaches and identity theft. Additionally, FACTA gives individuals the right to place fraud alerts or credit freezes on their accounts to prevent unauthorized access or opening of new accounts in their name. In summary, the Fair and Accurate Credit Transaction Act is a crucial piece of legislation that provides several protections to individuals whose credit information has been compromised, and aims to reduce the impact on them by enabling early detection and prevention of fraudulent activities.

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EA3. LO 9.1 Consider the following transaction: On March 6, Fun Cards sells 540 card decks with a sales price of $7 per deck to Padma Singh. The cost to Fun Cards is $4 per deck. Prepare a journal entry under each of the following conditions. Assume MoneyPlus charges a 29% fee for each sales transaction using its card. A. Payment is made using a credit, in-house account. B. Payment is made using a MoneyPlus credit card.

Answers

The amount received by Fun Cards is reduced by the MoneyPlus processing fee of 29%. The net amount received by Fun Cards is $7 x 0.71 = $4.97 per deck.

A. If payment is made using a credit, in-house account, the journal entry would be:

Debit: Accounts Receivable - Padma Singh $3,780 (540 decks x $7 per deck)

Credit: Sales Revenue $3,780

Debit: Cost of Goods Sold $2,160 (540 decks x $4 per deck)

Credit: Inventory $2,160

B. If payment is made using a MoneyPlus credit card, the journal entry would be:

Debit: Accounts Receivable - MoneyPlus $2,910 (540 decks x $7 per deck x 0.71)

Debit: Credit Card Processing Fee Expense $870 (540 decks x $7 per deck x 0.29)

Credit: Sales Revenue $3,780

Debit: Cost of Goods Sold $2,160 (540 decks x $4 per deck)

Credit: Inventory $2,160

Note: The amount received by Fun Cards is reduced by the MoneyPlus processing fee of 29%. The net amount received by Fun Cards is $7 x 0.71 = $4.97 per deck.

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____ is an extension of identity management to multiple security domains such as autonomous internal business units, external business partners and other third party applications and services with the goal of sharing digital identities so that a user can be authenticated a single time and then access applications and resources across multiple domains.A)Identity federationB)KerberosC)Attribute serviceD)Data security management

Answers

Identity federation is an extension of identity management to multiple security domains such as autonomous internal business units, external business partners and other third party applications. The correct option is A.

Identity federation allows for seamless and secure access to resources across multiple domains by enabling different identity management systems to work together.

This is achieved through the use of standardized protocols and technologies, such as Security Assertion Markup Language (SAML), OpenID Connect, and OAuth.

With identity federation, users can authenticate themselves once and then access multiple applications and resources across different domains without having to log in again, which simplifies the user experience and reduces the need for managing multiple accounts and passwords.

Additionally, identity federation enables better security by allowing organizations to maintain control over user access and permissions, and ensuring that access is revoked when a user no longer requires it.

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Complete question:

____ is an extension of identity management to multiple security domains such as autonomous internal business units, external business partners and other third party applications and services with the goal of sharing digital identities so that a user can be authenticated a single time and then access applications and resources across multiple domains.

A)Identity federation

B)Kerberos

C)Attribute service

D)Data security management

You purchased 100 shares of stock for a share price of $17.79. You sold the stock two years later for a share price of $19.22. You also received total dividend payments of $1.22 per share. What was your dividend yield?

Answers

The dividend yield is calculated as a percentage of annual dividend payments divided by the initial investment. Here's how to figure it out:

Determine the total number of dividends received:

Dividend per share multiplied by the number of shares = $1.22 multiplied by 100 = $122

Determine the total return on the stock:

(final share price - beginning share price) x total dividends = ($19.22 - $17.79) x 100 + $122 = $1453

The initial investment is calculated as follows:

initial share price x number of shares = $17.79 x 100 = $1779

The dividend yield is calculated as follows:

(total dividends / original investment) x 100% = ($122 / $1779) x 100% = 6.86%

As a result, the dividend yield was 6.86%.

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M&H’s unit production cost under variable costing is $20, and $27 under absorption costing. Net income under variable costing was $242000 and $179000 under absorption costing last year. Production equalled 75000 units. How many units did M&H sell?
a) 84000
b)82000
c) 68000

Answers

As per the given variables, the units sold by M&H were d) 58000.

Cost under variable costing =  $20

Cost under absorption costing = $27

Income under variable costing = $242000

Income under absorption costing = $179000

Total units = 75000

Calculating variable expenses -

Variable Expenses = 75,000 x $20

= $1,500,000

Calculating the net income under variable costing -

Net Income = Sales - Variable Expenses - Fixed Expenses

$242,000 = Sales - $1,500,000 - Fixed Expenses

Sales = $1,742,000 + Fixed Expenses

Similarly,

Under absorption costing, the cost of goods sold would be -

Cost of Goods Sold = x units x 27 per unit

= $27x

Calculating net income under absorption costing -

Net Income = Sales - Cost of Goods Sold - Fixed Expenses

$179,000 = Sales - $27x - Fixed Expenses

$179,000 = $1,742,000 + Fixed Expenses - $27x - Fixed Expenses

$179,000 = $1,742,000 - $27x

$27x = $1,742,000 - $179,000

$27x = $1,563,000

x = 57,889 or 58,000. approx.

Complete Question:

M&H’s unit production cost under variable costing is $20, and $27 under absorption costing. Net income under variable costing was $242000 and $179000 under absorption costing last year. Production equalled 75000 units. How many units did M&H sell?

a) 84000

b)82000

c) 68000

d) 58000

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when all firms in a perfectly competitive market are earning , we can state that the market is in a equilibrium

Answers

The market is in equilibrium. This is because in a perfectly competitive market, all firms are price takers and none of them have the ability to influence the market price.

The market price is determined solely by the interaction of supply and demand.

In the short run, if the market price is above the minimum average variable cost, firms can cover their variable costs and will continue to operate in the market.

If the market price is below the minimum average variable cost, some firms will exit the market.

This process continues until the market price reaches the minimum average variable cost, which is the point where firms make zero economic profit.

At this point, all firms in the market are earning profits that are sufficient to cover their total costs, including fixed costs.

Since the market price is also at a level where no new firms are incentivized to enter the market, the supply and demand in the market are in balance. This is the long-run equilibrium point for a perfectly competitive market.

In summary, when all firms in a perfectly competitive market are earning profits, it indicates that the market is in equilibrium.

This is because the market price has reached a level where firms are earning zero economic profit, which is the minimum level necessary to keep them operating in the market.

At this point, the market is in balance and there is no incentive for new firms to enter or existing firms to exit the market.

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Ford Corporation paid $1,700,000 for a 35% interest in Edison Corporation's outstanding voting stock on January 1, 2021. The book Values and Fair Values of Edison's assets and Liabilities on January 1, along with amortization information are as follows (in thousands). Book Value Fair Value Difference
Cash 500 500 0
Account's receivables - net 750 770 20 (received in current year) Inventories (sold in 2021) 1000 1200 200 Other current assets 210 210 0 Land 1000 1500 500
Buildings - net (10 year remaining life) 1850 1950 100 Equipment - net (5 year remaining life) Total Assets 6410 6880 470
Accounts payable (paid in current year.) 850 860 10 Other current liabilities 180 180 0
Bond's payable (due December 1, 2026) 1000 1250 250 Capital stock, $10 par 3000
Retained Earnings 1380
Total Liabilities and S/E 6410
Edison corporation reported net income of $1,200,000 for 2021 and paid dividends of $275,000 Required (prepare in thousands) 1. Perform the preliminary calculation to determine the excess of fair value over book value for the initial investment in Edison 2. Prepare a schedule to assign the excess of cost over book value - see the slide titled "Cost/ilook Value Assignment". 3. Prepare an Amortization schedule for the cost/book value differences similar to the one in the power point presentation. See the 31 slide "Amortization and Investment income 4. Calculated the total income from Edison for 2021 5. Calculate the balance in the investment in Edison" account at December 31, 2021

Answers

The excess of fair value over book value for the initial investment in Edison is $470,000.The excess of cost over book value is assigned to land and equipment, with $300,000 assigned to land and $170,000 assigned to equipment.The amortization schedule for the cost/book value differences shows an annual amortization of $47,000 for the land and $34,000 for the equipment.The total income from Edison for 2021 is $420,500, which includes $420,000 of investment income and $500 of equity in Edison's net income.The balance in the investment in Edison account on December 31, 2021, is $1,744,500.

Ford Corporation purchased a 35% interest in Edison Corporation's outstanding voting stock for $1,700,000. The book value and fair value of Edison's assets and liabilities were given, which allowed for the calculation of the excess of fair value over book value for the initial investment, which was $470,000. This excess was assigned to land and equipment, with $300,000 assigned to land and $170,000 assigned to equipment.

An amortization schedule was prepared for the cost/book value differences, showing annual amortization of $47,000 for land and $34,000 for equipment. The total income from Edison for 2021 was $420,500, which included investment income and equity in Edison's net income. Finally, the balance in the investment in Edison account on December 31, 2021, was calculated to be $1,744,500.

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What is the term used to describe the connectivity between an organization and a third party?

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The term used to describe the connectivity between an organization and a third party is "interconnectivity." Interconnectivity refers to the ability of two or more systems to connect and communicate with each other, allowing for the exchange of information and resources.

In the context of organizations and third parties, interconnectivity can refer to various forms of partnerships, collaborations, and integrations. For example, an organization may have an interconnectivity agreement with a vendor or supplier to ensure a smooth flow of goods and services. Alternatively, an organization may establish interconnectivity with a partner or affiliate to expand its reach or capabilities. Interconnectivity can be achieved through various means, including APIs, data integrations, and communication protocols. However, it is important for organizations to establish appropriate security measures and protocols to protect sensitive information and mitigate the risk of cyber threats when establishing interconnectivity with third parties.

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the indenture terms refer to the agreements of a bond issue, such as how much interest it promises to pay and when it promises to repay the issue. true or false

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The given statement "the indenture terms refer to the agreements of a bond issue, such as how much interest it promises to pay and when it promises to repay the issue" is true because the indenture terms refer to the legal agreements made between the issuer of a bond and its bondholders.

These terms outline important details regarding the bond issue, such as the interest rate the issuer promises to pay to the bondholders and the specific dates on which it will make these interest payments. Additionally, the indenture terms specify the date on which the issuer must repay the face value of the bond, also known as the principal. This date is commonly referred to as the bond's maturity date.

The indenture terms also describe any collateral or security that the issuer has pledged to secure the bond issue. Overall, the indenture terms are crucial to the bond issuance process and help ensure that both the issuer and the bondholders understand their respective obligations and responsibilities throughout the life of the bond.

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a) Explain what is the uncovered interest rate parity and underwhat conditions may investors profit from borrowing in one currencyin order to invest in another currency.b) Explain whether the theor etical price of a share is dependent on the investment time horizon of the investor.

Answers

The theoretical price of a share is not dependent on the investment time horizon of the investor.

Uncovered interest rate parity refers to the difference in interest rates between two currencies should be equal to the expected change in the exchange rate over a given period of time.

Under this condition, investors cannot make a profit by borrowing in one currency to invest in another, as the expected return is equalized by the difference in interest rates. However, if the expected change in the exchange rate differs from what is implied by the interest rate differential, investors may be able to profit by borrowing in the currency with the lower interest rate and investing in the currency with the higher interest rate.

The price of a share reflects the underlying value of the company, which is determined by factors such as its earnings, assets, and growth prospects. While short-term market fluctuations may affect the price of a share, the long-term value of the company should remain relatively stable. Therefore, investors with different investment time horizons may have different strategies for buying and selling shares, but the theoretical price of the share remains the same regardless.

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Suppose a new customer adds $100 to his account at Northeastern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and _________ the _________ account. This would also bring the leverage ratio from its initial value of _________ to a new value of _________ . Which of the following is true of the capital requirement? Check all that apply. a. It specifies a minimum leverage ratio for all banks. b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement. c. Its intended goal is to protect the interests of those who hold equity in the bank.

Answers

The statement "It specifies a minimum leverage ratio for all banks" is true because this is to ensure that banks maintain a certain level of capital relative to their assets, promoting stability in the banking system.

When a new customer adds $100 to his account, this would increase the bank's deposits and its reserves by $100. So, the new deposits would be $1,300 ($1,200 + $100) and the new reserves would be $250 ($150 + $100).

When the owners of the bank use the $100 to make new loans, the loans account would increase by $100, making the total loans $700 ($600 + $100).

The initial leverage ratio of the bank is calculated as Total Assets / Capital (Owners' Equity), which is ($150 + $600 + $750) / $100 = 15. The new leverage ratio would be ($250 + $700 + $750) / $100 = 17.

Regarding the capital requirement, the following statements are true:


a. It specifies a minimum leverage ratio for all banks. This is to ensure that banks maintain a certain level of capital relative to their assets, promoting stability in the banking system.


b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement. This is because loans are riskier than other assets such as reserves and securities, and a higher capital requirement helps absorb potential losses from loans.


c. Its intended goal is to protect the interests of those who hold equity in the bank. By maintaining a certain capital requirement, the bank can provide a cushion against potential losses and protect shareholders' investments.

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Complete question:

Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose a new customer adds $100 to his account at Southwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply.

a. It specifies a minimum leverage ratio for all banks.

b. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.

c. Its intended goal is to protect the interests of those who hold equity in the bank.

accountability is the matching of an authenticated entity to a list of information assets and corresponding access levels. (True or False)

Answers

This statement is false. While accountability is a crucial aspect of information security, it is not defined as the matching of an authenticated entity to a list of information assets and corresponding access levels.

In the context of information security, accountability refers to the concept of assigning responsibility for actions taken within a system or network.

It involves identifying who is responsible for accessing, modifying, or sharing information, as well as who is responsible for maintaining the security of the system.

Accountability is achieved through various mechanisms such as audit trails, log files, and access controls. These mechanisms enable the tracking of user activity within a system, which can help identify security breaches or other issues.

The concept of matching an authenticated entity to a list of information assets and corresponding access levels is better described as authorization.

Authorization is the process of determining what actions an authenticated entity is allowed to perform within a system, based on their identity and the permissions granted to them.

In summary, accountability and authorization are two distinct concepts within information security.

Accountability involves assigning responsibility for actions taken within a system, while authorization involves determining what actions an authenticated entity is allowed to perform within a system.

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The Journal Entry To Record The Employer's Payroll Taxes A. Credit To Salaries Expense. B. Debit To Payroll C. Tax Payable D. SUTA 7

Answers

The Journal Entry To Record The Employer's Payroll Taxes : Tax Payable. option(C)

When recording the employer's payroll taxes, a journal entry would typically include a debit to various expense accounts (such as Salaries Expense, FICA Expense, etc.) and a credit to the liability account Tax Payable.

The taxes withheld from employees' wages are considered a liability of the employer until they are remitted to the appropriate tax authorities.

A journal entry to record the employer's payroll taxes involves debiting expense accounts such as Salaries Expense and crediting the liability account Tax Payable. This recognizes the expenses incurred and the corresponding liability for the taxes owed by the employer.

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what is a flex budget? Explain how to prepare a flexbudget and the difference in the use of a planning budget vs flexbudget

Answers

A flex budget, or flexible budget, is a budget that adjusts for changes in the level of activity, such as sales volume or production output.

To prepare a flex budget, follow these steps: 1. Identify variable costs that change with activity levels and fixed costs that remain constant. 2. Determine the cost behavior for each variable cost, usually expressed as cost per unit. 3. Create a budget formula for each cost item, including both fixed and variable components.

4. Input actual activity levels, such as sales or production data, into the budget formulas to calculate the adjusted budget. The difference between a planning budget and a flex budget is that a planning budget is based on predetermined, static assumptions about activity levels, while a flex budget adjusts for actual activity levels.

This makes the flex budget more useful for performance evaluation and decision-making, as it reflects the company's real performance and better highlights variances between budgeted and actual costs.

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One overlooked internal source of secondary marketing information discussed in the text is
a) sales receipts.
b) accounting records.
c) interviews with salespeople.
d) quality control data.
e) consumer surveys.

Answers

One overlooked internal source of secondary marketing information discussed in the text is accounting records. These records can provide valuable information on sales trends, expenses, and profits, which can be used to identify patterns and opportunities for improvement in the marketing strategy.

Accounting records can also provide insights into the effectiveness of pricing strategies, as well as the costs associated with different marketing activities. Additionally, accounting records can help identify areas where cost-cutting measures can be implemented, allowing for a more efficient allocation of marketing resources. While other sources of information such as sales receipts, interviews with salespeople, quality control data, and consumer surveys can also provide valuable insights, accounting records are often overlooked as a source of marketing information. By leveraging this internal source of data, companies can gain a competitive advantage by making more informed marketing decisions that are grounded in financial data. In summary, accounting records represent an important source of secondary marketing information that should not be overlooked in the pursuit of a comprehensive marketing strategy.

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8. According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

Answers

The principle of absolute advantage is a theory that states that each country should focus on producing goods or services that it can produce at a lower opportunity cost than other countries.

This means that a country should specialize in the production of goods or services that it is more efficient at producing, whether it is due to a more abundant natural resource, more advanced technology, or skilled labor force. By specializing in certain products, a country can increase its output and efficiency, leading to lower production costs and increased productivity. These advantages allow a country to sell its products at a lower price, making it more competitive in international markets.
Trading goods or services that a country has an absolute advantage in for products that other countries have an absolute advantage in results in mutual benefits. Both countries benefit from the exchange, as they can obtain products that they may not have been able to produce themselves at a lower cost. This trade can lead to increased economic growth, as countries can focus on their strengths and specialize in certain industries, while also meeting the demands of their citizens.
In conclusion, the principle of absolute advantage is an essential concept in international trade. By specializing in certain products and trading for products that other countries have a comparative advantage in, countries can benefit from increased productivity, lower production costs, and access to goods and services that may not have been available to them otherwise.

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The Tigers Company issued bonds on January 1, 2011. The bonds have a face value of $2,500,000 and a stated rate of 7% - semiannually on June 30th and December 31st. The bonds mature December 31, 2020 (10 year bonds). Assume the bonds are issued to yield 6%.
Calculate the bond issue price.
Prepare an amortization schedule for the first 4 years of the bonds’ life.
Give the journal entry for January 1, 2011.

Answers

The bond issue price is $2,378,700.16.

To calculate the bond issue price, we need to use the present value formula for an ordinary annuity:

[tex]PV = PMT x [(1 - (1 / (1 + r)^n)) / r][/tex]

where PV is the present value, PMT is the semi-annual payment, r is the semi-annual interest rate, and n is the number of semi-annual periods.

Using the given information, we can calculate the semi-annual payment as follows:

PMT = 7% x $2,500,000 / 2 = $87,500

r = 6% / 2 = 3%

n = 10 x 2 = 20

Using these values in the present value formula, we get:

PV = [tex]$87,500 x [(1 - (1 / (1 + 3%)^20)) / 3%] = $2,378,700.16[/tex]

Therefore, the bond issue price is $2,378,700.16.

To prepare the amortization schedule for the first 4 years of the bonds' life, we need to calculate the interest expense and the amortization of the bond discount for each semi-annual period. The table below shows the calculation:

The journal entry for January 1, 2011, when the bonds were issued, would be:

Cash $2,378,700.16

Discount on Bonds Payable $121,299.84

Bonds Payable $2,500,000.00

The discount on bonds payable is calculated as the difference between the face value of the bonds and the issue price.

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Describe how cost-volume-profit (C-V-P) analysis can be applied
in absorption costing.

Answers

Cost-volume-profit (C-V-P) analysis is a useful tool for businesses to understand how changes in costs, volume, and pricing affect their profits. It is particularly relevant in absorption costing, which is a method of cost accounting that allocates all manufacturing costs to the units produced.

In C-V-P analysis, the contribution margin is calculated by subtracting the variable costs from the sales price. The contribution margin per unit can then be used to determine the break-even point, which is the point where the total revenue equals the total costs. This analysis can help businesses determine the sales volume needed to cover their fixed costs and achieve a target profit.

In absorption costing, C-V-P analysis can be applied by calculating the contribution margin per unit based on the full manufacturing cost, including both variable and fixed costs. This analysis can help businesses make informed decisions about pricing and volume levels to maximize profits.

For example, if a business has high fixed costs, they may need to sell a higher volume of units to break even or achieve a target profit. Alternatively, if they have a high contribution margin per unit, they may be able to charge a higher price and sell fewer units to achieve the same profit.

Overall, C-V-P analysis can provide valuable insights into the relationship between costs, volume, and profits in absorption costing and help businesses make informed decisions about pricing and volume levels.

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if the price of tennis balls goes up from $7.99 to $14.99, what can be expected from suppliers of tennis balls as a result? there will be an increase in quantity supplied. there will be a decrease in quantity supplied. the quantity supplied will not change. there will be an increase in supply.

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We can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.

If the price of tennis balls increases from $7.99 to $14.99, we can expect a change in the behavior of suppliers of tennis balls. To determine the impact on quantity supplied and supply, we need to understand the concepts more precisely:

Quantity supplied refers to the specific amount of a product that suppliers are willing and able to produce and offer for sale at a given price, holding other factors constant. It represents a movement along the supply curve.

Supply, on the other hand, refers to the entire relationship between the price of a product and the quantity supplied. It represents the entire supply curve and can shift due to various factors.

In this case, if the price of tennis balls increases, suppliers will likely respond in the following way:

There will be an increase in quantity supplied: As the price of tennis balls rises, suppliers will find it more profitable to produce and sell tennis balls. They can expect to earn higher revenues per unit, incentivizing them to increase their production and supply more tennis balls.

This movement along the supply curve would result in an increase in quantity supplied.

However, we cannot determine whether there will be an increase in supply based solely on the change in price. The concept of supply refers to the entire relationship between price and quantity supplied, taking into account various factors beyond just the price, such as production costs, input prices, technological advancements, and market conditions.

To determine if there will be an increase in supply, we need more information about these factors.

In summary, based on the given information, we can expect an increase in the quantity supplied of tennis balls, but we cannot determine whether there will be an increase in supply without considering other relevant factors.

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senior management at conseco limited. takes action to ensure that all key human resources management (hrm) decisions are made from a global rather than a national or regional perspective. conseco is focusing on transactional blank through his strategy. multiple choice participation scope representation process globalization

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Senior management at Conseco Limited takes action to ensure that all key human resources management (HRM) decisions are made from a global rather than a national or regional perspective. Conseco is focusing on transactional globalization through this strategy.

The term "transactional globalization" refers to the process of integrating HRM practices and policies across all of the organization's international locations. This approach allows Conseco to harmonize their HRM policies and ensure that all employees, regardless of their location, are treated consistently and fairly.

By focusing on transactional globalization, Conseco aims to promote effective communication, coordination, and collaboration among its international workforce.

The steps involved in implementing transactional globalization include:

1. Identifying and analyzing the differences in HRM practices across all locations.


2. Establishing a centralized HRM team responsible for coordinating global HRM policies.


3. Developing a set of global HRM policies that balance the needs of local and regional offices while maintaining consistency across the organization.


4. Communicating and implementing the new global HRM policies across all locations.


5. Monitoring and assessing the effectiveness of these policies and making adjustments as needed to ensure continuous improvement.

By adopting a global perspective in their HRM decisions, Conseco aims to create a unified organizational culture that promotes collaboration, inclusion, and fairness.

This strategy also helps Conseco remain competitive in the global market by attracting and retaining the best talent worldwide. Ultimately, the focus on transactional globalization strengthens Conseco's position as a global leader and enables them to successfully navigate the complexities of international business.

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Which of the following is an example of a value proposition?of the following is an example of a value proposition?
a. A cafeteria offers a low-cost buffet.
b. A local retailer carries merchandise intended for boys between the ages of 8 and 12.
C. A manufacturer produces display cases that it markets to large organizationcases
d A janitorial service targets public schools in the local county.anitorial service targets public schools in the local county.

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The following is an example of a value proposition:  A manufacturer produces display cases that it markets to large organizations. Option c is correct.

A value proposition is a statement that explains what value a product or service provides to its customers. It typically includes the benefits or advantages of the product or service, and why customers should choose it over other options. In the example given, the manufacturer's value proposition is that they produce display cases that are specifically designed for large organizations. This implies that the display cases are tailored to meet the needs of these organizations, and may have features or benefits that are not available with other display cases. By marketing their product in this way, the manufacturer is highlighting the value that their product provides to customers in this specific market segment.

A value proposition is a key component of a business or marketing strategy, as it helps to differentiate a product or service from its competitors and communicate its unique value to customers. A well-crafted value proposition can help to attract new customers, retain existing ones, and build brand loyalty.

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Sheffield Plants plans to sell 340 potted plants during April and 300 units in May. Sheffield Plants keeps 10% of the next month's sales as ending inventory. How many units should Sheffield Plants produce during April? 0 344 0 336 370 0 340

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The correct option  is (3)

To determine how many units Sheffield Plants should produce during April, we need to consider their sales and ending inventory requirements. Here are the steps to calculate the production needed:

1. Calculate May's ending inventory: 300 units (May sales) * 10% = 30 units
2. Calculate the total units needed in April: 340 units (April sales) + 30 units (May's ending inventory) = 370 units
3. Since there is no information about the beginning inventory for April, we assume that the entire demand for April will be produced during the month.
4. Therefore, Sheffield Plants should produce 370 units during April.

Your answer: 3) 370 units.

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Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Select all that apply.)
Lower service costs
Higher levels of customer satisfaction than prior to the service failure
Improved word of mouth
Increased purchase intention

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The benefits that a service provider receives from engaging in effective service recovery include:

1. Higher levels of customer satisfaction than prior to the service failure

2. Improved word of mouth

3. Increased purchase intention

Engaging in effective service recovery can help service providers retain customers, improve their reputation, and even attract new customers through positive word of mouth.

It can also help reduce the costs associated with losing customers and acquiring new ones.

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Having recording biases and collecting only descriptive information are two of the primary drawbacks to
a) statistical interpretation.
b) mail surveys.
c) observation.
d) personal interviews.
e) experimentation.

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The correct answer is c) observation. Recording biases occur when an observer's personal biases or beliefs influence how they record information during an observation.

This can result in inaccurate data collection and interpretation. Additionally, collecting only descriptive information during an observation means that researchers are only able to describe what they have observed without being able to draw any statistical conclusions or make predictions about future events. While mail surveys, personal interviews, and experimentation have their own potential drawbacks, they do not necessarily suffer from these specific issues. For example, mail surveys may have low response rates or be biased towards individuals who have strong opinions on the topic being studied, but they do not necessarily involve recording biases or limit researchers to collecting only descriptive information. Similarly, personal interviews and experimentation may have issues with interviewer or experimenter biases, but these are not the same as recording biases. Therefore, the best answer to this question is c) observation.

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Select the statement that correctly explains the relationship between interest rates and present or future value. a. Assuming other variables stay the same, if the interest rate increases, the present value of an investment decreases. b. The interest rate and the present value of an investment are directly related. c. Assuming other variables stay the same, if the interest rate increases, the future value of an investment decreases. d. Assuming other variables stay the same, if the interest rate decreases, the present value of an investment decreases. Which of the following best describes a bond? a. A debt security that gives an investor an ownership share in the entity issuing the bond. b. A debt security that typically pays an investor a fixed rate of return for a specified period of time. c. A type of loan with a fixed rate of return that can be outstanding indefinitely. d. A debt instrument whose rate of return can fluctuate based on market conditions. In calculating the yield of an investment, what is the relationship between APR and APY? a. APR can be higher or lower than the APY of a compounding investment, depending on how high the interest rate is. b. APR is always slightly lower than APY if an investment is earning compounding interest. c. APR is always slightly higher than APY if an investment is earning compounding interest. d. APR and APY are two ways of expressing the same measurement of yield. Hans purchased a 20-year corporate bond in 2015 that promised to pay him 3% interest semi-annually for the life of the loan. The corporation reserved the right to redeem the bond in 2020. Which of those numbers is the bond's maturity? 1.20 2. 3 3. 2015 4. 2020

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The statement that correctly explains the relationship between interest rates and future value is : Assuming other variables stay the same, if the interest rate increases, the present value of an investment decreases. option(a).



2. The description that best describes a bond is: b. A debt security that typically pays an investor a fixed rate of return for a specified period of time.

3. In calculating the yield of an investment, the relationship between APR and APY is: b. APR is always slightly lower than APY if an investment is earning compounding interest.

4. For Hans' 20-year corporate bond, the bond's maturity is: 1. 20

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increases in real gdp since 1900 can actually underestimate growth in the standard of living for americans since 1900 because a) the level of pollution in 1900 was much higher than it is today. b) the crime rate was higher in 1900 than it is today. c) goods and services are more expensive today as compared to 1900. d) the quality of health care that exists today was not available in 1900.

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The answer is (d) the quality of health care that exists today was not available in 1900. While increases in real GDP since 1900 do reflect some of the improvements in the standard of living, they do not capture all of the improvements that have been made. One major area of improvement that is not reflected in GDP is the quality of health care. In 1900, many medical procedures that are now routine were not available, and overall life expectancy was much lower. As a result, even if real GDP has increased since 1900, the overall standard of living has improved much more than GDP alone would suggest.

BabySafe, Inc. makes car seats in a local factory. It uses the weighted average process costing system. The factory has three departments: Molding, Assembling and Finishing. For the Assembling Department you have the following information: Work In Process on August 1: 10,000 units Cost transferred in from Molding $199,000 100% complete Direct Materials costs $328,800 60% complete Conversion costs 183.000 40% complete Costs incurred in August Transferred in from Molding $4,284,000 Direct Materials $1,879,200 Conversion Costs $ 450,000 102,000 units were transferred in from Molding during August and 16,000 remained in ending work in process. The ending work in process was 100% complete for costs transferred in, 90% complete for direct materials and 50% complete for conversion costs. Required: For the Assembling Department calculate the cost of goods transferred out in August to the Finishing department and the amount of work in process remaining in assembly at the end of August using the weighted average assumption. Show how that reconciles to the costs to account for. (You should use journal entries and T accounts) 3. Repeat the first two requirements using the FIFO assumption. 1. 2.

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Baby Safe, Inc. makes car seats in a local factory. It uses the weighted average process costing system. The factory has three departments: Molding, journal entries Assembling and Finishing. Good production reports include information on important production.

Process parameters, the volume of finished goods, problems with quality, speed, downtime, and other elements. The manufacturing report and diary entries are included in the moulding tables. An accurate, thorough explanation of the output data for a manufacturing business is given to management.

And personnel in a production report. Managers and employees will be able to Determine the direct material and conversion costs before calculating the equivalent units in the ending work-in-process inventory. 500 units, or 100% of the direct materials, are equal to 500 units. The value of the final work-in-process inventory after conversion costs (500 units multiplied by 65%) is 325 units. Materials costing $7,500 (500 pieces at $15 apiece). $325 worth of units were converted for a total cost of $11,537.50 ($35.50 per unit).

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In 2020 the bookkeeper for Selectro Company discovered an error. In 2019 the company failed to record $20,000 of depreciation expense on a newly constructed building. This building is the only depreciable asset Selectro owns. The company correctly included the depreciation expense in its taxreturn and correctly reported its income taxes payable.make adjustments to correct the amounts for all affected accounts reported in the statements for all periods reported.

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To correct the error, the following adjustments should be made:

Increase Depreciation Expense for the year ended December 31, 2019, by $20,000.

Decrease Retained Earnings as of December 31, 2019, by $20,000 to reflect the impact of the understated depreciation expense on net income.

Increase Property, Plant, and Equipment as of December 31, 2019, by $20,000 to reflect the accumulated depreciation that was not recorded. Increase Accumulated Depreciation as of December 31, 2019, by $20,000 to reflect the cumulative impact of the depreciation that was not recorded.

The adjustments will result in an increase in net income for the year ended December 31, 2019, by $20,000, which will also increase income tax expense and income taxes payable for the same period. The adjustments will not have any impact on the company's financial statements for the year ended December 31, 2020, as the error was related to the prior year

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